Yesterday we highlighted how Beijing property developers were allegedly cutting prices in order to find sufficient demand.
Now Shanghai prices are reportedly plummeting, if transaction prices are a decent gauge of overall market prices:
The average home transaction price in Shanghai tumbled 48.43 per cent week-on-week to 9,787 yuan per square meter in the week ended July 25, reports Oriental Morning Post, without citing any source.
We have to admit that the following price declines seem distorted, however. Perhaps lower-end properties distorted the average transaction price.
The average home transaction price in Chongming district plunged 94.1 per cent last week to 2,493 yuan per square meter.
Average home transaction prices in Huangpu district and in Pudong fell 70.91 per cent and 62.85 per cent, respectively.
In the same period, the transaction volume of commercial residential properties in Shanghai soared 366.93 per cent week-on-week to 4,246 units.
Still, even if there’s some distortion from a mix-effect, it seems fair to guess that prices are weakening to some degree.